# C_2007269EN.01001301.xml

| 10.11.2007 | EN | Official Journal of the European Union | C 269/13 |
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Judgment of the Court (Second Chamber) of 20 September 2007 — Commission of the European Communities v Kingdom of Spain

(Case C-177/06)( 1 )

(State Aid - Aid scheme - Incompatibility with the common market - Commission decision - Implementation - Abolition of the aid scheme - Cancellation of outstanding aid - Recovery of aid made available - Failure to fulfil obligations - Defences - Illegality of the decision - Absolute impossibility of giving effect to a decision)

(2007/C 269/25)

Language of the case: Spanish

Parties

Applicant: Commission of the European Communities (represented by: F. Castillo de la Torre and C. Urraca Caviedes, acting as Agents)

Defendant: Kingdom of Spain (represented by: N. Díaz Abad, Agent)

Re:

Member State's failure to fulfil its obligations — Failure to adopt, within the period prescribed, the measures necessary to ensure implementation of Articles 2 and 3 of the Commission's Decisions of 20 December 2001 on a State aid scheme implemented by Spain in 1993 for certain newly established firms in Guipúzcoa (Spain) (C(2001) 4448) (OJ L 77 of 24 March 2003, p. 1), in Álava (Spain) (C(2001) 4475) (OJ L 17 of 22 January 2003, p. 20) and in Vizcaya (Spain) (C(2001) 4478) (OJ L 40 of 14 February 2003, p. 11).

Operative part of the judgment

The Court rules:

| 1. | In failing to take the necessary measures within the prescribed period, to comply with Articles 2 and 3 of each of:
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Commission Decision 2003/28/EC of 20 December 2001 on a State aid scheme implemented by Spain in 1993 for certain newly established firms in Álava (Spain); —
Commission Decision 2003/86/EC of 20 December 2001 on a State aid scheme implemented by Spain in 1993 for certain newly established firms in Vizcaya (Spain); —
Commission Decision 2003/192/EC of 2 December 2001 on a State aid scheme implemented by Spain in 1993 for certain newly established firms in Guipúzcoa (Spain), the Kingdom of Spain has failed to fulfil its obligations under those provisions; | — | Commission Decision 2003/28/EC of 20 December 2001 on a State aid scheme implemented by Spain in 1993 for certain newly established firms in Álava (Spain); | — | Commission Decision 2003/86/EC of 20 December 2001 on a State aid scheme implemented by Spain in 1993 for certain newly established firms in Vizcaya (Spain); | — | Commission Decision 2003/192/EC of 2 December 2001 on a State aid scheme implemented by Spain in 1993 for certain newly established firms in Guipúzcoa (Spain), |
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| — | Commission Decision 2003/28/EC of 20 December 2001 on a State aid scheme implemented by Spain in 1993 for certain newly established firms in Álava (Spain); | | | | | | |
| — | Commission Decision 2003/86/EC of 20 December 2001 on a State aid scheme implemented by Spain in 1993 for certain newly established firms in Vizcaya (Spain); | | | | | | |
| — | Commission Decision 2003/192/EC of 2 December 2001 on a State aid scheme implemented by Spain in 1993 for certain newly established firms in Guipúzcoa (Spain), | | | | | | |

| 2. | The Kingdom of Spain is ordered to pay the costs. |
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( 1 )  OJ C 143, 17.6.2006.

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